Knowledge Centre Category: Benefits & Expenses

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Cycle To Work Scheme and Bikes for Owner Managers

Purpose-driven organisations leverage the Cycle to Work Scheme to advance environmental and social goals, offering employees tax-efficient access to bikes and safety gear. Employers can provide cycles tax-free if used mainly for commuting, with inclusive options like e-bikes and adapted cycles enhancing accessibility.

Business and Staff Entertainment, Annual Parties and Trivial Benefits

Business entertainment isn’t tax-deductible or VAT-reclaimable, but staff entertainment may be—especially if it’s inclusive and modest. Trivial benefits under £50 can also be gifted tax-free if they meet HMRC’s criteria.

Salary Sacrifice

A practical guide to salary sacrifice for all employers, with a focus on ethical, green, and financially beneficial options.

Travel Costs for Employees or Directors

Travel costs for employees and directors are tax-deductible for the company. However, certain travel expenses may need to be reported.

Qualifying Expenses for Employees

HMRC has an exemption from paying tax and National Insurance on certain qualifying expenses that are paid, reimbursed or provided to employees.

PAYE Settlement Agreements (PSA)

A voluntary arrangement that allows the employer to pay the tax and National Insurance on certain employee benefits and expenses on behalf of their staff.

Paying for Training on Behalf of Directors and Employees

Companies may occasionally wish to pay for training or educational courses for directors or employees. When considering such expenditure, it is essential to assess both its deductibility for corporation tax purposes and whether it constitutes a taxable benefit for the individual receiving the training.